NetEase, and
KE Holdings were among the big names to suffer double-digit slides in the session. Education-specific companies were particularly hard hit, with
New Oriental Education & Technology Group,
Gaotu Techedu, and
Image source: Getty Images.
So what
While the big regulatory news centered around China s after-school tutoring space, the market read much deeper into the industry-specific development, and investors sold out of stocks without any immediate exposure to tutoring. It will take some time to assess the implications of regulatory shifts for the multitude of individual companies, but the general concerns do not appear to be unwarranted.
It s been a challenging month for investors with significant exposure to Chinese stocks. The latest round of sell-offs and news that the country will impose tighter standards on for-profit tutoring companies exist in the context of broader crackdowns on publicly-traded companies. The Chinese government has raised concerns that
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